EBK CFIN
6th Edition
ISBN: 9781337671743
Author: BESLEY
Publisher: CENGAGE LEARNING - CONSIGNMENT
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Tokyo Corporation receives checks that amount to P400,000 each day, whereas the amount of checks the company writes each day averages P350,000. It normally takes three days for incoming checks to clear through the banking system, and outgoing checks generally clear in four days. What is the firm’s net float? No decimal point. Use comma.
Each business day, on averagem a company writes checks totaling $36,000 to pay its suppliers. THe usual clearing time for the checks is four days. Meanwhile, the company is receiving payments from its customers each day, in the form of checks, totaling $47,000. The cash from the payments is available to the firm after two days.
Calculate the company's disbursement float, collection float, and net float
Calculate the company's disbursement float, collection float, and net float, if the collected funds were available in one day instead of two.
Each business day, on average, a company writes checks totaling $14000 to pay its suppliers. The usual clearing time for the checks is four days. Meanwhile, the company is receiving payments from its customers each day, in the form of checks, totaling $25000. The cash from the payments is available to the firm after two days. a. Calculate the company’s disbursement float, collection float, and net float.
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- Each business day, on average, a company writes checks totaling $30,000 to pay its suppliers. The usual clearing time for the checks is four days. Meanwhile, the company is receiving payments from its customers each day, in the form of checks, totaling $50,000. The cash from the payments is available to the firm after two days. a) Calculate the company’s disbursement float and net float. b) How would your answer to part (a) change if the collected funds were available in one day instead of two?arrow_forwardEach business day, on average, a company writes check totaling $38,500 to pay its suppliers. The usual clearing time for the checks is five days. Meanwhile, the company is receiving payments from its customers each day, in the form of checks, totaling $49,500. The cash from the payments is available to the firm after three days. a. Calculate the company's disbursement float, collection float, and net float. Disbursement float _____________ Collection float ________ Net float ___________ b. Calculate the company's disbursement float, collection float, and net float, if the collected funds were available in one day instead of three. Disbursement float _________ Collection float _____________ Net float _____________arrow_forwardOn a typical day, a company writes 48 checks worth a total of $8,925 that clear in 3 days. The company also collects 60 checks worth a total of $9,940 that clear in 2.5 days. Is this a collection or disbursement float? What is the amount of the float?arrow_forward
- Each business day, on average, a company writes checks totaling $37,500 to pay its suppliers. The usual clearing time for the checks is six days. Meanwhile, the company is receiving payments from its customers each day, in the form of checks, totaling $48,500. The cash from the payments is available to the firm after four days. a. Calculate the company’s disbursement float, collection float, and net float. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.) b. Calculate the company's disbursement float, collection float, and net float, if the collected funds were available in two days instead of four. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.)arrow_forwardEach business day, on average, a company writes checks totaling $37,000 to pay its suppliers. The usual clearing time for the checks is three days. Meanwhile, the company is receiving payments from its customers each day, in the form of checks, totaling $48,000. The cash from the payments is available to the firm after two days. a. Calculate the company’s disbursement float, collection float, and net float. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.) b. Calculate the company's disbursement float, collection float, and net float, if the collected funds were available in one day instead of two. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.)arrow_forwardEach business day, on average, a company writes checks totaling $36,500 to pay its suppliers. The usual clearing time for the checks is five days. Meanwhile, the company is receiving payments from its customers each day, in the form of checks, totaling $47,500. The cash from the payments is available to the firm after three days. a. Calculate the company’s disbursement float, collection float, and net float. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.) b. Calculate the company's disbursement float, collection float, and net float, if the collected funds were available in two days instead of three. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.)arrow_forward
- If Service World has $1,950 cash, $400 of government Treasury bills purchased last month with a six-week maturity, and $940 of cash set aside for legal reasons, how much will the company report on the balance sheet as “Cash and Cash Equivalents”?arrow_forwardYoxo Company writes checks totaling P3,000. These checks clear in 7 days. Simultaneously, the company receives P1,700. The cash is available in 2 days on average. Calculate the disbursement, the collection, and the net float.arrow_forwardTaehyung Company reported a balance of P258,000 in its Cash account at the end of the month. There were P120,000 deposits in transit and P90,000 outstanding checks. The bank statement showed a balance of P300,000, service charges of P36,000 and the proceeds of a note collected by the bank for the company. The note had a face value of P90,000. The interest on the note collected by the bank wasarrow_forward
- Modos Company has deposited $4,080 in checks received from customers. It has written $1,540 in checks to its suppliers. The initial bank and book balance was $430. If $3,550 of its customers' checks have cleared, but only $420 of its own, calculate its float.arrow_forwardTed's Toys just reconciled its bank account and has $12,300 in outstanding deposits and $31,400 in checks outstanding. The firm's checkbook has a positive balance. The firm sells on a cash basis only and deposits its receipts on a daily basis. The deposited funds are available to the firm the following day. The firm writes and mails checks on a daily basis also. These checks generally clear the bank in three days. What do you know about the firm's float given this information? A. The firm has disbursements float but no collection float. B. The collection float exceeds the disbursement float. C. The firm has a net collection float. D. The disbursement float exceeds the collection float. E. Since transactions occur daily, the firm has no float.arrow_forwardArcher Arrow Company examined its cash management policy and found that it takes an average of 5 days for the checks that the company writes to reach its bank and thus be deducted from the checking account balance. On the other hand, it takes an average of 4 days from the time the company receives the checks from its customers until the fund becomes available for use at the bank. On the average, Archer writes a total of P70,000 per day and it receives from customers a total of P80,000 per day. Compute the disbursement float. Compute the collection float. Compute the net float.arrow_forward
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